Mini Options: Good for Hedging, Bad for Speculating

Investors with small positions in expensive stocks can buy insurance with a new tool in the options market

Like bourbon or cayenne pepper, puts and calls are valuable tools, but only if used properly. Early indication from the options market is that investors are indeed acting responsibly.

This initial evidence is coming from the most unlikeliest of places: Mini-options, which appeal to odd-lot investors who cannot afford to spend $45,000 to buy 100 shares of Apple (ticker: AAPL) or $80,000 on 100 shares of Google (GOOG).